An LNG bunkering terminal will be up and running in Busan New Port by 2020.
South Korean shipping company Polaris Shipping will build the facility with a KRW600 billion (USD500 million) investment.
The terminal will occupy a 185,700 m² site in Busan New Port and is to have four berths and two LNG tanks.
Busan Port Authority and Busan Regional Oceans & Fisheries Administration had received a business proposal from Polaris Shipping and sought approval from the Ministry of Oceans and Fisheries.
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Although cheaper heavy fuel oil or CST380 fuel is still widely used in international waters, cleaner fuel has to be used in emission control areas.
The International Maritime Organization is also promoting LNG fuel to make shipping greener.
Busan Port also expects that if usage of the Northern Sea Route grows, it would facilitate more LNG imports from Russia, giving it an edge over Singapore, which is currently the world’s biggest bunkering port by sales volumes.
LNG bunkering is already in place in Norway while ports such as Antwerp, Rotterdam, Shanghai, and Singapore are planning such infrastructure.
Polaris Shipping, which specialises in shipping dry bulk commodities, operates 30 ships totalling 7,544,953 dwt.